President Bush’s program to bail out subprime borrowers does not address the root causes of the current crisis, according to George Favvas, the CEO of www.SmartHippo.com said.

“Let’s face it. Some consumers took on loans they knew they couldn’t afford, but others lacked the knowledge or information to make wise decisions. This was exploited by certain lenders who put short-term financial gain ahead of their customers’ best interests,” said Favvas.

Favvas cited the example of mortgage brokers who steered consumers to subprime loans from lenders paying the brokers higher commissions, even when the consumers could have qualified for lower-interest prime loans.

“The subprime crisis has triggered the beginnings of a more consumer-centric approach to lending based on transparency and accountability,” Favvas said. “The lenders who understand and embrace this transformation are the ones who will succeed in the long run.”

According to Favvas, web technologies will be the key enabler for this transformation, as they will permit consumer communities to organize and share information and experiences on a scale never before possible. The Internet has the power to level the playing field and put the balance of power back in the hands of consumers, where it belongs.

SmartHippo.com is the first-ever website that uses the power of community to help consumers find the best mortgage rates and save money. SmartHippo.com allows any individual to post information and feedback on the rate they received, and to compare rates with other members of the community with similar profiles. Members of SmartHippo.com can see real rates reported by real consumers, and sort through banks based on feedback posted by other members of the community. For more information on the company, which is privately held, see: HIPPO

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